P&G Swot Analysis

Nondurable consumer products or consumables companies develop and manufacture a variety of household items that have a limited life span, usually three years or less. The industry can be segmented into household products and personal care products. Household products include: soaps and other detergents, such as laundry detergents and bleaches; polishes and sanitation goods; and other cleansing agents. Personal care products consist of : personal cleaning products such as toothpastes, shampoos, bar soaps and body washes; health and beauty aids, including cosmetics, fragrances and over the counter medications; and diapers and feminine hygiene products. Other items range from cat litter to automotive additives. The top worldwide producers include Procter and Gamble, Kimberly Clark, Unilever, Colgate-Palmolive, Church and Dwight, Clorox, and Ecolab.

Industry Trends and How It Operates

Given the low growth rates of population and household formations in the developed nations, it has become more difficult for consumer product manufacturers to achieve significant sales gains. In the graph above, the percentage of nondurable goods to personal income fluctuates around 25% but there is no significant change between months. In addition, consumer product companies are faced with intense competition and higher commodities costs. For example, rising oil and natural gas prices are key concerns since they serve companies directly as an energy source or indirectly such as resin (a substance used to create plastics). In response, household and personal care product companies are making efforts to stimulate sales in varying ways, such as entering new markets, creating new products categories, strengthening a strong brand image, acquiring businesses, targeting baby boomers, and spending on advertising. Because of these efforts, the industry should continue to consolidate, and consumers will likely see more product choices at more points of purchase.

Entering New Markets

With established US and western European markets reaching saturation, manufacturers are actively pursuing growth overseas. Companies in this sector are investing heavily in developing and emerging markets in China, Central and Eastern Europe and India, where recent trends in economic and population growth bode well for home and personal care products consumption. In many of these countries, increases in gross domestic income and population are outpacing those of the United States and Western Europe.

The economic outlook for these regions is positive. The World Bank forecasts that over the next several years emerging European markets, China, and India will see GDP growth rates of 5.0%, 7.7% and 6.2% respectively. Manufacturers have shifted their attention away from Latin American countries – at least for now – as a result of weak economic growth in those countries.

Creating New Product Categories

Given the maturity of the household nondurables industry, new product development is a key driver of a company’s future sales growth. New products evolve largely through the efforts of a company’s Research and Development, in conjunction with its marketing division. To remain competitive, companies need to develop a continuous stream of new, value-added products. In any given year thousands of new products in all categories inundate the market. However, only 15% of new products in any given year reach their business objectives; the rest are withdrawn from the market.

Another benefit, from the manufacturer’s point of view, is that successful new products typically carry higher profit margins than established items. Their special qualities, which manufacturers tout, are designed to appeal to a target market, and consumers are willing to spend more to obtain the real or perceived value added.

The costs of new product development vary greatly, depending partly on how revolutionary the product is or how...

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...SWOTANALYSIS OF P and GP and G is one of the largest consumer goods company in the world. It markets 300+ brands in more than 180 countries. P and G is engaged in diverse products like beauty, health, fabric, snacks and many more. P and G’s leading market position with its strong brand portfolio provides it with a significant competitive advantage. But there are lot of external factors like economic slowdown, environmental factors, etc which pose a threat to P and G’s progress. Internal factors also have a large impact on the company’s growth. Thus it makes necessary for SWOTanalysis in order to develop further strategies for P and G.
Strengths
Research and development :
P and G has strong R and D capabilities. P &G is ranked as one of the top-20 R&D investors among US-based companies. It has over 20 technical centres on 4 continents and more than 25000 active patents for its products. The important factors in P and G’s innovation process are its practice of consumer demand research and its “Connect and Develop” R and D structure. The base for P and G’s progress in R and D is its “Connect and Develop” strategy in which P and G interacts with customers to...

...its customer’s input and developed this new product.
Company:
In 1946, Procter and Gamble (P&G) introduced Tide as a heavy-duty laundry detergent. This product was the culmination of research started in the 1920s to develop an effective household detergent. The extended program was due to P&G’s dominance in the household market and history in the soap making industry. James Gamble started his career as a soap maker and later joined forces with his brother-in-law, William Procter, in 1837. While once competitors, they joined together and made what is now the 14th largest company in the U.S. in terms of profit.
P&G currently has 23 different brands that generate over a billion dollars in sales annually, but they’re not stopping there. Growth continues for P&G as they constantly introduce new products and research the wants and needs of their consumers. One of the most recent additions to their Tide brand is the Tide to Go, which was introduced in 2005. This product removes stains that commonly occur on the go such as: coffee, ketchup, barbeque sauce and soda to name a few. Although the original Tide to Go was thought to be compact enough, consumers wanted something more portable. Responding to these needs, Tide to Go Mini was introduced nearly a month ago in August 2008. The product has now been shrunk to lipstick size.
Consumers:
Although this product may benefit...

...Andrea Carter
Product Market Analysis for Proctor & Gamble
July 7, 2012
Product Market Analysis
Proctor and Gamble is serving customers in over 180 countries with their massive market capitalization. They have a purpose to live up to for their consumers in all of those 180 countries. They provide services and branded products that are of superior quality and great value which will improve the consumers’ lives in the world now and forever. As stated on their website, “Our purpose works to unify us in a common cause and growth strategy. It is powerful because it promotes a simple idea to improve the lives of the world’s consumers every day. P$G grows by touching and improving more consumers’ lives in more parts of the world…more completely.”
The company has multiple SBU’s that are broken up into two categories which consist of household care and beauty & grooming. The household category houses products with names such as Bounce, Mr. Clean, Luvs, and Pepto-Bismol. And the beauty & grooming category houses products like Crest, Gillette, Old Spice, and Tampax. Each of these product brands are an SBU. They have over eight different kinds of laundry detergent that are in the U.S. and six brands of the shampoo and hand soap each. P&G also has toothpaste, paper towels, and tissue that fall in that four brand category with the dishwashing detergents. And then there are the deodorants, floor...

...Part 2.1 External analysis
a. Macro- environment analysis of P&amp;G in Vietnam
According to Mr. Emre Olcer, General Director of P&amp;G Vietnam, Vietnam is one of the priority markets of P&amp;G. Up to now, P&amp;G's investment in Vietnam has increased three times, reaching over $ 200 million in 2012 and will continue to increase in the next years. Vietnam provides foreign enterprises with several favorable conditions.
PEST analysis
* P- Political
* Vietnam is the nation having a stable political system with safe living environment, guaranteed security.
* Overall administrative procedure has been reformed in Vietnam over the past 10 years, especially in the last 3 years, since the start of the implementation of the Scheme 30. These changes in the state bureaucracy, complex procedures enable foreign firms to enter Vietnam market and operate more conveniently.
* E- Economic
* Vietnam has undergone an unstable macroeconomic situation since 2007 and it has become worse in the years of 2011 and 2012. Two of the most serious problems are bad debt rampant and poorly performing state-owned enterprises. In addition, the government has implemented strict managerial policies on business activities such as: pricing, import restrictions, limited number of business enterprises and broadcast programs,...

...﻿Strategic Analysis of Procter& Gamble
Basic Business Profile
P&G is one of the oldest surviving global companies in U.S., and it gained a remarkable global presentation through organizational expansion (recently mainly by acquisition) and has made its oversea operation an increasing part that tends to constitute more percentage of its total revenue, from nearly a third (3.5 billion out of 10,772 million) to over half (40 billion out of 39,951 million). In recent years, it is focusing on the goal to become a truly global company, and has just been poised for a global merger.
External Analysis: Industry Structure
P&G competes with other companies that satisfy the same basic customer needs for consumer goods in the global consumer goods industry. Use Porter’s five forces model to analyze its threats and opportunities.
First, the consumer goods industry does not have a high level of technology-know-how lock-out, but since companies are competing on both higher customer perceived value and lower cost, and the established companies are becoming more consolidated that made some oligopolies in the global market, so the economies of scale are becoming increasingly important factor, as small-scale entrants cannot cover the cost of marketing and advertising costs without large volume of output to reduce unit cost. Also, although there is no switching cost to change brands, many customers have...

...SWOTANALYSISP&G is a global manufacturer and marketer of consumer products. It operates in five distinct business segments: fabric and home care, beauty care, baby and family care, health care and snacks and beverages. It has some of the most well-known and established brands in its portfolio but faces intense competition from other global consumer giants as well as local companies.
Strengths
Large scale of operations
P&G has significant scale advantages. It is the global leader in all its four core categories - fabric and home care, beauty care, baby and family care, health care. Its products are sold in over 160 countries worldwide with manufacturing capabilities in over 42 countries. The company manufactures and markets close to 300 products. It derives substantial economies from its scale of operations in finance, logistics, marketing, research, new product development, innovation, technology and other functions. The company’s huge buying power (from commodities to media) is being progressively leveraged through global procurement and services. A large scale gives P&G significant competitive advantage against the smaller, unorganized players in local markets.
Strong branding
P&G is one of the world's most successful brand creation and brand building companies. The company participates in more than 40 product categories...

...gamble I will be analyzing key external and internal factors that play a major role and how P&amp;G strategize the operation of its business. P&amp;G has been in business for over more than a century founded in 1837 in Cincinnati, Ohio by William Procter and James Gamble coming together to make and sell candles and soaps (David, 2013). This humble beginning has since transformed into a multinational manufacturing, distribution and marketing enterprise that provides 50 brands to consumers (David, 2013). Today, Procter &amp; Gamble is the world’s biggest consumer products company with more than 78.9 billion in sales (David, 2013). It manufactures and produces a very diverse line of products that offer superior standard of quality, practicality and value.
Procter &amp; Gamble business functions are based on their mission to improve the lives of the world’s consumers every day, by touching lives in small but meaningful ways. Integrity, trust and respect for others are important values that drive the everyday working methods and decision-making of P&amp;G, and are enforced by a code of ethics that guarantees a high standard of quality and morals.
P&amp;G is taking advance of the opportunities that are being brought about by the eradication of trade barriers, enhancements and expansions in Internet and IT, as well as new, emerging and enlarging markets and types...

...P&G OUTLOOK
Three billion times a day, P&G brands touch the lives of people around the world. This happens because P&G provides branded products of superior quality and value to improve the lives of the world’s consumers. This results in leadership sales, profit and value creation, allowing employees, shareholders and the communities in which we operate to prosper.
In 1837 William Procter and James Gamble formed a humble but bold new enterprise. What began as a small, family-operated soap and candle company grew and thrived, inspired by P&G's purpose of providing products and services of superior quality and value.
The power of P&G's Purpose is the one factor above all others that have contributed to the Company's long heritage of growth. It is an essential part of who they are, who they have been and who they will be for generations to come.
The Procter & Gamble Company (P&G) is a brand behemoth. The world's #1 maker of household products courts market share and billion-dollar brands. Its business is divided into three global units: beauty, health and well being, and household care. It also makes pet food and water filters and produces soap operas. Some 25 of P&G's brands are billion-dollar sellers, including Gillette Fusion, Always/Whisper, Braun, Bounty, Charmin, Crest, Downy/Lenor, Folgers (which it...